Correlation Analysis Between CAC 40 and NASDAQ UK

This module allows you to analyze existing cross correlation between CAC 40 and NASDAQ UK. You can compare the effects of market volatilities on CAC 40 and NASDAQ UK and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CAC 40 with a short position of NASDAQ UK. See also your portfolio center. Please also check ongoing floating volatility patterns of CAC 40 and NASDAQ UK.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

CAC 40  vs.  NASDAQ UK

 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, CAC 40 is expected to generate 4.03 times less return on investment than NASDAQ UK. But when comparing it to its historical volatility, CAC 40 is 1.5 times less risky than NASDAQ UK. It trades about 0.03 of its potential returns per unit of risk. NASDAQ UK is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  96,412  in NASDAQ UK on September 13, 2019 and sell it today you would earn a total of  3,460  from holding NASDAQ UK or generate 3.59% return on investment over 30 days.

Pair Corralation between CAC 40 and NASDAQ UK

-0.17
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy50.77%
ValuesDaily Returns

Diversification Opportunities for CAC 40 and NASDAQ UK

CAC 40 diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding CAC 40 and NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK and CAC 40 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CAC 40 are associated (or correlated) with NASDAQ UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ UK has no effect on the direction of CAC 40 i.e. CAC 40 and NASDAQ UK go up and down completely randomly.
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